As NGO activity is increasingly being subjected to scrutiny, it is imperative for the Government to respond to the Intelligence Bureau report and disclose its policy towards the voluntary sector
Protocol and precedent do not demand an official reaction to the recent Intelligence Bureau report on NGOs. However, the sheer scale of accusations levied against NGOs, including being instruments of foreign powers who are responsible for halting development, the possible ramifications on economic security, development and freedom of the voluntary sector along with the strong reactions to the report, collectively merit a response from the authorities.
Debates on the accuracy of the report, credibility of the Intelligence Bureau and the significance of NGOs continue unabated. Serious allegations against the Government’s intentions, including officially curbing dissent and using NGOs as scapegoats to justify the non-delivery of economic promises, have also been made. Further, with the report gaining popularity with State legislatures and High Court petitions, along with the involvement of the CBI and police forces in the matter, it seems that the issue will only become complicated with time. In the midst of these developments, the future of the NGOs listed in the report along with 43,527 organisations registered under the Foreign Contribution Regulation Act and approximately 20 million NGOs in the country, remains uncertain as an official reaction on the issue is eagerly awaited.
The accuracy and authenticity of the report need to be examined. The claims made in the report appear to be exaggerated, and are not duly substantiated but at times even illogical. Critics hold that the report is faulty in documentation, analysis and conclusions. For example, the report alleges that the Indian economy suffered a loss of two to three per cent of the GDP per annum due to NGOs, which roughly amounts to two to three lakh crore rupees. This estimate by any stretch of imagination cannot be explained and the report also does not provide any data or proof to substantiate this. The report also completely disregards the potential of NGOs as partners in development.
linked to this is a larger issue of competence and credibility of the Intelligence Bureau itself. Although the role and record of the agency in analysing and documenting emerging threats to national security in the past cannot be undermined, the increasing reliance of the ruling Government on the IB to promote their own policies also cannot be negated. The credibility and objectivity of the institution is further questioned by the fact that paragraph six of the secret IB report is a reproduction of a speech made by Prime Minister Narenda Modi in 2006. While activists and NGOs have lashed out against the report, the need of the hour is to revisit, the structure, functioning, and expertise of the agency and ensure that it does not become only a mouthpiece of the ruling Government.
At the centre of the entire controversy on NGOs, is the question of foreign funding and the much debated FCRA. The FCRA since its inception in 1976 and subsequent amendments in 2010 and 2011 has been a rather complex and strict regulation. In fact, non-compliance with FCRA regulations is judged to be the biggest drawback of NGOs, and it’s time for the Government to revisit the law in order to assess the reasons for this. Although the Home Ministry’s recent announcement of organising workshops for familiarising NGOs with the FCRA is certainly a welcome step, much remains to be done to make the law NGO-friendly as well as development-friendly.
The other issue which needs to be examined is the corruption within the Government infrastructure and machinery in its association with NGOs. In 2013, the Asian Centre for Human Rights released a report based on a four-year study of Government of India funding to the voluntary sector. According to the report, over Rs1,000 crore of Government funding to the voluntary sector is decided by bribes and political influence. The report, taking a conservative estimate, stated that during the fiscal years 2002-03 to 2008-09 at least Rs9,98,15,38,153 was spent as bribes to officials approved who approved NGO projects. This degree of corruption makes Government funding almost inaccessible for meritorious NGOs, and thus they seek foreign funding for their activities in India.
linked to these four vital issues is a larger and more important question which needs to be first understood and then adequately addressed. Why is India as a liberal democratic economy supporting and encouraging FDI in diverse sectors ranging from education and retail to defence,but questioning and targeting foreign funding in the voluntary sectorIJ When adequately addressed, this question would not only reveal the true motives of the past and present Governments in targeting NGOs but also guide the Government’s policy on the growth and development of the voluntary sector.